tv Parker Spitzer CNN November 17, 2010 4:00am-5:00am EST
good evening. welcome to the program. >> we've got a great show tonight. >> always do. >> louisiana governor bobby jindal is here and he has declared war on the white house in a new book. >> louisiana seding also? >> talking about how the president handled the bp oil spill. and we'll be talking about the great new wedding of the 21st century. >> thank goodness the brits keep giving us these big social events to cheer us up when things are looking really gloomy in the world.
but all is not bad. we realized today who will make out potentially like bandits from qeii. do you know who will sfwhin the banks like goldman sachs them always win no matter what we do. they'll get more of our tax money. just what they need. here is how it will work. the fed will principle a lot of money to buy back treasury bonds to drive down interest rates which drives up the price of bonds. did you get all that? you get a ph.d. in economics. the banks knew this ahead of time because the fed was telling everybody. so the banks went out and bought them cheap to sell them back to the fed at a higher price. so they'll make money. it won't then economy. >> pardon me if i'm not stunned. honest to goodness, i don't remember what life was like before quantitative easing. it has become my icebreaker when i meet people. this week i was watching a cartoon. >> you watch cartoons too?
>> it was on the "huffington post." the best explanation i've seen yet on what the qe 2 is and does. >> how does the fed execute the quantitative easing? >> they print the money and then they guy treasury bonds. >> do they buy the treasury bond from the treasury department? >> no. they buy the treasury bonds from the goldman sachs. >> you must be [ bleep ]. >> no. >> let me get this straight. if i want to guy treasury bonds with my money, i can buy them directly from the treasury. >> yes. >> and if you want to guy treasury bonds with your money, you can buy them from the treasury. >> right. >> but if the ben bernanke wants to buy them using the american people's money, he does not buy them from the treasurery. he buys them from the goldman sachs? >> exactly. >> does the goldman sachs give him a good price? >> of course not. they are the goldman sachs them make their living ripping off the american people. >> how is the goldman sachs able to do this? >> the fed announce what's it will sgi when it is going to buy
before it does the trade. >> so the goldman sachs can front run the fed and give them the worst possible price on the treasury bonds? >> yes. exactly. >> the fed is okay with this blatant theft from the american people? >> of course, otherwise the fed would just buy the treasury bonds directly from the treasury department. >> who inside the fed is responsible for the buying of the treasury bonds. >> the buying of the treasury bonds is conducted by the new york branch of the federal reserve. >> and who is in charge of the new york branch? >> the head of the new york branch is the william dudley. >> what did the william dudley do before running the new york fed? >> before running the new york fed, the william dudley was a partner at the goldman sachs. >> so the guy in charge of the american people's money when dealing with the goldman sachs used to be a partner at the goldman sachs? >> yes. >> and nobody has a problem with this? >> apparently not. >> is this an episode of the twilight zone? >> i don't think so. >> are you sure? >> pretty sure. >> you know, when i first saw
this i started laughing so hardy started, tears coming out of my eyes. i started crying because it's true. goldman got t.a.r.p. money. goldman got $12.9 billion from that whole aig mess that was completely insane. should never have happen. goldman was turned into a bank holding company overnight. never happened before. so they can make more money themselves get money interest-free from the government. it a scam. a rip-off. what's going on? >> the banks are supposed to make a profit. let's face it. you can't fault them for trying to take advantage of a good deal, right? >> i don't have any problem with their making money but there is fundamentally a problem with our policy that has given so much money to the banks over the last couple years. it has not brought the economy back to where it should be. the bank are giving themselves huge bonuses out of taxpayer money. it is wrong ethically. it should have been gone legally. the government didn't know how to deal with them and that is the source of a lot of anger. >> it doesn't feel ethical. >> that's right. to discuss how to get our economy moving again, time for a headliner. ben?
>> possibly the most fame economics teacher in history based on that role in ferris buehler's day off. his new book is called the little book of bullet proof investing. tonight we'll talk to him about some tough economic issues. welcome. >> an honor to be here. i assure you. >> thank you for joining us. let's talk about the qe 2 the fed is putting in place. first, it will work? >> we don't know if it will work. i question whether it will work. there is a chart you can get from the government if you want to put yourself to sleep of how much money the fed has put into the banking system in the last three years. they have raised reserves on about $2 billion to $1 trillion. roughly 36 months. that's a very, very big increase. and we still don't have a robust recovery. >> you saw the conversation about goldman front running. >> right. that's not really front running. front running is when you buy stock or a bond because you know
some piece of information that other people don't know about it, such that there will be a big order placed for it. the usual kind. >> there is a real question that you are raising before, a brilliant question which is, why when we found goat goldman sachs to be doing that, will they be a primary dealer. that's a really good question. >> just to play devil's advocate -- >> if you're going to be defending goldman sachs, you really are playing devil's advocate. >> certainly at this table. isn't that their job to make profits? if it's hello over. >> that was al capone's job, too. most of what they do is perfectly lex it is what the other investment banks do, too. why does there need to be an intermediary between the fed and the banks or any other person who are buying bonds? or selling bonds, rather, why do we need that? it can be done directly by computer.
if it is not done directly, the fractions of a sale could be so tiny they will be barely measured. an incredible subsidy it is and not the only subsidy fed is giving to the banks. the fed is allowing them to borrow at virtually zero and then rethreatened federal government 3%. that's a subsidy involving tens, hundreds of billions of dollars. >> i'm not defending the goldman sachs. okay? >> they do plenty of thing that are great and meritorious. this is a questionable one. >> i'm just thrilled to hear somebody as emthen as you saying precisely what i and many others are saying. >> we've been doing this a long time. when i was writing my column in the new york times, we agreed on this. the investment bankers have their hooks into the american policy and taxpayers in an astonishing way that nobody else does. >> we've established that they're operating within legal bounds. >> some of it is legal bounds. >> certainly a question of ethics. why isn't anyone calling them
out on this? >> the power of goldman sachs is phenomenal. when i used to write about them negatively in the new york times, i would get barraged, just bombarded by their very, very skillful publicity arm who would talk to me, talk to my superiors, just generally make my life miserable. they are very, very powerful. i don't think there has ever existed a private entity quite as powerful as goldman sachs in this country. so many people from their entity are within the government and high reaches. they have so many publicists, so many lawyers, so many friends. it's amazing what they can. do. >> i can give you one other private entity but we'll go there one other time. >> you can't tease us like that. >> sure i can. sure i can. >> i want to know who it is too. but that was a goldman deal. >> you read his mind. >> they rescued aig so the aig could pay the money to goldman sachs.
>> i think aig was more powerful than goldman a few years back. then it flip flopped. let's have this conversation. we've been asking people coming to our show, given the enormity of the budget deficit, how do you deal with this longer term? >> they have the means test social security. >> explain what whatever that mean. >> it means well to do people would get little or no social security. it is ridiculous for well to do wealthy people to get social security just because they've paid into it. we are in an economic emergency. they shouldn't be able to get it. smith medicare should be means tested. >> can i jump in? what you're suggesting is a radical transformation of the contract that was made between the government about these program. i'm not disagreeing with you. >> yes. i think the contract has to be renegotiated. because we simply can't afford to pay it anymore. and i think they should be making serious cuts in reopportunity dante government agencies them do the same thing
that other government agencies, i'll give you the clear example of the ftc's bureau of come sxaet the justice department's anti-trust division. they are quite a number of those. the one thing i would never cut, not one single cent is defense. not one congressmen. we don't have any friends that we can count on. we're in a very dangerous world. i would not cut one penny from defense. >> you think we should extend the bush tax cuts across the board? >> no. not across the board. give us 36 months and then raise taxes steeply on the wealthy. there are a lot of rich people in this country. there are so many rich people, it is insane. and to raise taxes on people with incomes of $2 million, $3 million, $4 million would raise a lot of money and it is needed. >> but not $250,000. >> that's a joke. that's a joke. i don't know where mr. obama came one that number. it is a joke number. >> there is a lot of light between $250,000 and $1 billion. >> i talk to warren buff at the time other day and we were having this argument. he said at least raise the tax on people of a billion dollars or more right now.
there aren't a huge number but there are quite a few. >> can i make the point, somebody who is viewed as being a rather conservative economist, what you're suggesting is a very progressive liberal agenda. you're making thing much more progressive in term of the tax sxoed the way benefits are given out. >> i would have the tax rates run like this. when you get to really high number, have them go up quite a lot. >> to what percent? >> i don't know what percent but if a person has an income of $5 million, $50 million a year he can pay a couple million more and still live pretty well. >> when i make that much, i'll do it. i just want that on the record right here. if i make $10 million, i'll hand a couple over. >> i think you should. and so should other rusch people and i don't think it will discourage rich people from working. >> i don't mean to do this as a quiz. have you wlaed the marginal tax rate were during the roosevelt administration. >> during world war ii they were at 90%. up into the '50s.
and we had the most vivacious growth we've ever had in the economy during world war ii and the post-war sbeerd the '50s and it was very, very high tax rates. the idea that tax rates discourage prosperity is not proved. but i think to raise tax during a recession is extreme folly. extreme folly. >> you're saying take a pause. >> right. we're already in a recovery. let the recovery get to work and then we'll raise them. >> thanks for joining us. >> glad to be here. >> thank you. >> please come visit us again. >> i would love to. coming up next, the louisiana governor tells us about his fwud president obama. >> while he is being angry with me, rahm emanuel as chief of staff is cursing my chief of staff several feet away. i said we didn't criticize you for the food stamps. we don't see the plan. and this was symptomatic. to me, an administration that was disconnected from the reality, the facts on the
ground. let me tell you about a very important phone call i made. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses...
not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket. these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp.
when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. governor bobby jindal is our person of interest and he certainly had an interesting year.
spearheading the bp oil spill clean-up along the gulf coast. he has a new book out. leadership in crisis. and i'm happy that he is joining me today. thank you for coming, governor. so good to see you again. >> great to see you again. >> i knew you before you were governor. >> and i've been a fan of your writings for many years. great to see you on tv. >> thank you, thank you. a good start. >> starting with your book. you come right out of the gate taking president obama to the woodshed for his treatment, for the way he handled the bp oil spill. and particularly about what that when he came to louisiana that first time. tell me about that. >> it is so symbolic. his first visit to our state. after the oil spill. air force one lands. the president gets off the plane. he come down and i'm there to greet him at the tarmac. he pull me aside. he is clearly agitated. they've actually tip off washington reporters and said, watch, the president will be mad. i understood him being angry. i thought he would be angry at the bp, at the oil, the response
to date from the bureaucracy. instead he was angry about a routine letter we had sent the day before about of all thing, food stamps. and he says, he was worried that we were criticizing hill. he tells me, careful, this will get bad for all of us. while he is being angry with me, rahm emanuel, his chief of staff is kurgs out my chief of staff several feet away having the same conversation. and i had to say, we didn't criticize you for food stamps. we're frustrated we're not getting the boom we need. we're not getting the skimmers we need. we're not getting the plan. this was symptomatic. an administration disconnected from the reality, the facts on the ground. but by the way, i think that was the same message the voters sent two weeks ago. they've been trying to tell the president, we're worried about the economy and jobs. we don't want you spending all this money. we don't want the expansion of obama care. >> let me go back quickly to the food stamp question. you called or read a letter requesting emergency food stamps and then you held a press conference to say that you hadn't heard from him. the white house told us last
night that you held a press conference the same day you asked for them. >> they still missed the point. when you read the story in the book. i make the point i did send the letter the day before. i did not do a press conference on the food stamps. i did a press conference saying here are the dozens of things we've done. into the press, we don't expect an answer until monday. has the worst-case scenario in case bp doesn't do what they're supposed to do. the thing they missed, what was astounding was that he was mad about the wrong thing. this wasn't the top of our list, our top priority. this wasn't an urgent matter. we hadn't even criticized him about this. you're criticize megaabout food stamps. mr. president, with all due respect, i didn't criticize but food stamps. you go back and look at the press conference. it was the last item. >> do you think he is a little thin skinned? >> we saw that. absolutely. his second visit to our state at the end of a meeting with the local officials, he literally chides me and the parrish president. he said i don't want to see out cnn criticizing me. they picked on cnn in particular. he did not say on tv. he said on cnn.
what was amazing to me, one of the thing i write in leadership in crisis, forget that the politics. just get job done. don't worry about the criticism. don't worry about the under that yixts go get the job done and he go else will take care of itself. what was frustrating, it wasn't just one or two isolated examples. you would have thought five years after katrina that we would have learned this lesson. i think what happens is when the federal government gets so big and so expensive. tries to do too many thing, tries to run car company, health care, tries to do all these thirngz it loses the core competency. i wasn't shy about criticizing the federal government during katrina. this isn't a republican-democrat issue. >> let's get a couple elephants out of the room. you're running for president in 2012? >> absolutely not. you can record that. no ifs, ands or buts. i'm running for re-election in louisiana. we've cut spending, cut tax. important folio.com says we have the second best. we're the third best at creating a jobs. we still have more work to do.
>> i would say then, i'll take you at your word that you're not running in 2012 but i will bet you're running in 2016 and you'll only be what? 44? your resume is fairly astonishing. you were a rhodes scholar at 24. governor at 36. you've got a little time. >> i've got three young children that make me feel older and older every day. my job is to do the best for the people of louisiana. maybe go back to the private sector. i think this was an important moment. forget about 2012 or 2016. 2010 is our important year for our country. i think this is the greatest country in the history of the world. i'm not a pessimist at all. i think we have to decide, government spending is now 24% of the gdp. normally 18 to 20%. it is projected to rise to 26%. deficit at $14 trillion. projected to rise to $26 trillion. we need to decide as krax we don't have four or six years to wait. we need to decide right now what is it we're going to leave for
our children? the chinese won't keep buying our debt. interest rates, inflation will go up. the valley eustis dollar will go down. now is the time, i'm glad to see senator mcconnell change his mind on earmarks. it is a small but important step. i think if the majority had gone back, if the newly elected republicans had gone back to the voters and said it is the same old. same oefld we're going back to the way it was before. they would have been thrown out. they would have said this is not the change we voted for. >> let's get rid of the other elephant in the room. i'm glad to see that you're back to the old bobby jindal. the one i met was this wonky fast talking intellectual who could spout numbers like you just did. when you gave your response to the state of the union, which was catastrophic. would you agree with that. >> absolutely. >> you mentioned in your book and up the teleprompter doesn't like you and you don't like it. i think the walk may have killed you. >> this is awful. >> in case our viewers didn't
see it. >> good evening. and happy mardi gras. i'm bobby jindal. governor of louisiana. >> all right. who told you to do that walk out? >> that's the first time since the speech i've heard it i didn't listen to myself speak, obviously. and i was very clear in the book, let me take responsibility. it is so easy to blame others, blame consultants and advisers. i delivered the speech. that's my fault. and clearly it was awful. the delivery was awful. all my life people have been telling me to speak more slowly. >> i knew that's what happened. someone told him to slow it down. so that every day americans could follow what he was saying. and i thought, no. go back to being hue really are. so this is a chance for to you reintroduce yourself in a way and sort of say, this is who i am. >> this is my chance to share some ideas about energy, health care and other issues rith important to the country. it if anybody is watching it, the one take-away lesson is be yourself. if could i do it again, i would do it without notes. that's the way i like interacting with people. >> you're describing yourself as, you were raise ad hindu. you became a christian. you are a conservative republican.
people have a certain expectation when they meet that you you'll an certain way. tell us a little about your story. >> my mom and dad came to baton rouge so my mom could study at lsu. she was pregnant with me. she didn't have insurance. i was a preexisting condition. my dad did not know anybody. he pucks up a phone book and i describe this in the book. and literally goes through company after company until he guess a job. i think their story is more fascinating than mine. he grew up one of nine children without electricity or water. as he middle child. his older and younger siblings, brothers and sisters, nobody gets a formal education and he does. and i look at that. it is so improbable. what motivated them was they wanted a better quality of life for their children. and what i love is their opt mifl them come to this new country, this new state them don't know anybody. they're pregnant, doesn't have a job. they have this confidence in america if you work hard, you can succeed and you can do well. and they did. he gets a job. i was born and raised in baton rouge. go through public schools.
went on to brown university. not a hot bed republican of ideology. go to oxford university. a series of jobs but the most important thing i'm grateful to my parents for. my dad always told me, son, we're not wealthy. we're not giving you an inheritance for a famous last name. what they gave me was unconditional love. the love have high expectations. what i loved about it, in my dad's mind, why can't you do anything? you can never come home and give them an excuse. if up the teacher doesn't like me. or the world is not fair. he would say what does that matter? >> governor jindal, thank you so much for joining us. we'll be keeping an eye out in 2016 if not '12. can we have a lavish all singh, all dancing wedding of the next kichk england? probably not. but at the same time you can't scurry off to a registry office.
protocols and believe it or not what this may mean for the british economy, richard quest. hi, richard. >> good evening to you both. and my word, what a lot of protocol and trivia there is about this particular betrothful. >> before we get started, they met in 2001 in college and they've been together pretty much ever since. is there anything behind this timing? this isn't an old-fashioned shotgun wedding, is it? good grief, woman. hush your mouth immediately. i don't know when you're suggesting. the fact is, they've been living together. they've been living together without benefit of clergy for some time. but the truth is, it has been eight years in the making. they had a short break in 2007. but substantially what we saw today and i hesitate to say this to you two cynics.
but what we saw today was romance, natural romance, albeit in the guise of royalty. >> look, we don't know everything about this. i'm sure the folks over there, the tabloids are known to poke and pry and dig as hard as any journalist over here. what are the rumors? any sword it stories going to be coming out soon? >> no. i think that kate certainly needs to be extremely careful. as one top pr person was saying, there will be no shortage of people trying to sell a story. who did what to whom, where, when, why, and who paid for it. but remember, kate has now been part of the william scene for seven or eight years. they've taken a much more robust approach when it comes to protecting her freedom, her press freedom. of course now she is the fiancee. she is fair game to a point but i don't think there will be a sudden onslaught.
this woman will be the next queen plus one of england. their marriage will take place next year. and so while you two may be digging in the dirt, at the moment in london -- >> no, no, no. >> we fought a war 200 years ago about this stuff so we're trying to figure out royalty. we don't know how to deal with it. taking it one step at a time. >> we have no interest in tabloid journalism. let's 61 oh to the importance of this wedding to the souvenir and tourism industry. i hear everybody is pretty excited about the money. >> yep. there's no question. first of all, the wedding it self will be, they're going to have to get the tone right. britain is in an era of austerity. jobs have been lost, and the government is cutting the deficit in a draconian fashion. can we have a lavish all singing, all dancing wedding of the next king of england? probably not. at the same time you can't
scurry off to a registry office and have a civil ceremony and hope another couple of curled up sandwiches. >> you've had a lot of problems lately with labor and riots and so is this going to be a nice distract for britain? >> yes. you know, it's funny. they often say that royalty is the distract for the common people. and certainly some truth in that. if you look historically at a royal wedding in '47. again and again, royal event does take people's minds off the misery of drudgery of every day life. and that will definitely happen next year. >> it will be interesting to see the details of the wedding reveal in the next several months. thank you for being with us. >> ah, you see, you see, secretly, you along with everybody else, you want to know about the dress. you within to know who is invited. you want to know about the cake. we're all in this together. >> i confess. i want a royal wedding right here.
>> kounl me off that list. i'm for one who said we got rid of the royalty 200 years ago and thank goodness we did. don't turn that dial coming. >> unfortunately if you consider the sales tax and also property tax and all of the other taxes we pay, our tax system is very regressive. it take much more of a percentage from relatively modest incomes than it does from people at the top. let me tell you about a very important phone call i made.
when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket. these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit.
plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now.
it is the elusive holy guardrail today. how to restore the middle class. this will make or break president obama over the next two years. joining us, with us on his take of how to solve the crisis. the author of after shock. the next economy and america's future. welcome, mr. second. >> thank you. >> when i read this book, i have to tell you and i mean this as high praise. ini wish i had written this book. it is powerful. it presents the crisis and presents ideas to solve it.
so first tell the public, what is the broken bargain that you refer to in the first portion of this book? >> it is essentially a bargain that we made in the early part of the century. that was because workers are consumers, workers need to be paid enough so that they can turn around and guy goods and service that's we produce. and the trouble is, that over the last 30 years, we have broken that bargain. american workers, typical workers, average workers, have paid less and less as a proportion of the total economy. so by the time of the housing bust when people could no longer borrow, well, essentially that broken bargain came back to haunt us. because american consumers just don't have the money to keep the economy going. >> the other part of this bargain was that while the middle class workers were getting less, the wealthy were getting more. a rising disequilibrium as you describe it in the book. >> yes. what is so staggering, and so
unlike the rest of our history, is that over the last 30 years, wealth and income have concentrate more and more at the very top. the top 1%. i mean, frafl, by the late 1970s, the top 1% was taking home around 9% of total income. 9% of total income is a lot. but then income and wealth continued to concentrate at the top so that by 2007, the top 1% was taking home 23.5% of total income. >> you have a chart in the book that i would like to put up on the screen here that shows how wage stagnation is the phrase we're using here. that blue line turns flat around 1970. and that is where wages for workers leveled off and stopped increasing. explain why that happen. >> it happened for two reasons. one was globalization. new technologies like containers.
could not guantanamoer ships, cargo ships, satellite communications technology. eventually container and internet all allowed the production process to be parcelled out around the globe to wherever pieces of that production process could be done most efficiently and cheaply. but there was a second technological change that occurred. and it all came to the surface in the late 1970s. and that is automation. many jobs that had been done here in person were automated. >> what is the answer? how do we push back? >> what we do have to do is two thing. number one, we've got to have a tax system that was equitable. we have to make sure people in the middle class get wage subsidies. so they have enough money to turn around and buy what needs to be bought. for example, another example, would be to exempt the first $20,000 of income from the pay roll tax and subject incomes over $250,000.
>> can we stop -- for one second. i think many people may not understand. right now the pay roll tax applies only up to a certain threshold. you want to raise that threshold so weldsier folks pay more into that system. >> yes. the pay roll tax which essentially, soerl security tax and some others. ends about $106,000. every dollar above that is not subjected to the pay roll tax. well, why not exempt the first $20,000 of income from the pay roll tax all together. and then take incomes over $250,000 and subject the dollars over $250,000 to the pay roll tax. >> parenthetically, if we were to do what you suggested about the pay roll tax, that would then make the social security system solvent way into the distant future. >> it would. it would. and you know, when i say to people at the top who accused me of being a class warrior or a redistrictist, look, you will do better.
we know historically in the 19, lane '40s, 50s, early 60s, you will be doing better with a smaller percentage of a rapidly growing pie than bull a high share, as you do right now, of the economy that is growing very painfully slowly. that's anemic because there is not enough demand in it. most people just don't have the money to turn around and buy thing. >> one of the interesting ideas that you proposed toward the end of the book is a new way to finance education. explain this to us and what you would it do in tell of access to education. >> right now, a lot of poor and middle class kids, low and middle class kids, can go to higher education. even though college is critical of getting ahead, colleges are so expensive. even state universities are increasing their tuition. so here's my idea.
everybody should get free college tuition at a state university of public university. but then, be required to pay back a 10% of their incomes for the first ten years of their full time earnings. that means that people who go into, young people who go into, say, investment banking or high priced lawyering, or any kind of lucrative pro ferks they would be paying 10% and they would be there by subsidizing those young people who want to go into social senses or who want to provide legal services, who maybe even want to be journalists. who want to give back to society thing that aren't a lot of high priced careers. >> okay. mr. secretary, unfortunately, time is out. fascinating conversation. your book is provocative, fascinating. it should be read by everybody. it is called after shock.
i hope folks go out and read it. thank you for joining it's today and we hope you will join us down the road. >> thanks very much. >> when we come back, can another royal wedding quiet british anger over budget cuts? stay with us. >> washington is full of vampires. they suck the life out of peel. i think that some people in this there with all these ideals and want to change the system and then you go through the politics, the red tape. by tend of the day they look like they're so jaded and used up.
it's our nightly gathering of our interesting guests. we let them have a little fun with topic. >> we're join by our party regular from the nation of liberal magazine. a republican media strategist, and actor from the very popular vampire theme twilight saga. he is known through a nonprofit that focuses on empowering people to take on issues in their community. when my daughter know you are here today, i am in deep trouble. i will put that out there right now. welcome, he have one. >> wow. okay. the first topic of conversation is the penguin nuptials in great
britain. prince william and kate middleton are engaged officially. so everybody there is excited. not only because of the obvious things but because they think this will spur the economy and kind of get thing moving again. souvenir, visitors, tourism, all that. who would you like to see marry to get our economy rolling again? >> i have a variation on that theme. which is, i would like to actually see a wife swap with -- >> what? >> wow. >> wait, wait. palin goes to san francisco. pelosi goes to wasilla and turn it into a reality show. that would actually garner -- >> with husbands, too? >> yeah. that would garner far more interest than any marriage going on in america right now. >> wife swapping instead of marriage. that segues. >> i'm always for republicans for wife swapping. i think maybe you just want nancy pelosi far away.
>> pelosi living with todd for a week would just, i think, be fascinating. >> i bet they would be mutually charmed. >> maybe. >> in england they have royalty. here unfortunately we just have reality stars. sarah palin or kim kardashian. if we're talking about pure economic boost, a kardashian wedding or anything from those folk who are famous for being famous. everyone says they hate them but can't stop watching them. >> i don't see the trinket for me. >> maybe it should be suki and palin. let's see them switched. >> you are inviting the wrath of todd palin. >> i need to trademark this idea. what about the interview today? >> you don't need to say which one. just "the interview." >> like goldman sachs. >> with the prince and his fiancee. they didn't look quite at ease. did you all --
>> yeah. >> no. >> it was beyond not at ease. they had a big pillow in between them. they barely looked at them. but again, they're british. so it is difficult to tell. are they excited or is this just -- >> this is how the brit to it. this is familiar behavior. >> it looked like something happened right before the interview. you could see the tension between them. yeah. he does not look like he wants to be there. >> by the way, i invited a few members of the press corps to tell them we're getting married. >> and she looks scared, actually. >> i think she was nervous. that's natural. >> it is anybody racking and he is more used to this attention although she's been in the mix a while. it is like that scene in wedding contract, where's the bad fiancie steps up and says we have an founsment. we're getting married and she is not in on it. >> i think they may have discussed it. but look, it it is really tough to be under those lights. >> i think he is on to something will.
>> now we feel sorry for them. >> maybe it was the queen mother who announced they were getting married and no one told them. >> what do you think it is like meeting in in-laws? >> a little tougher than normal. >> super sized. >> yeah. high expectations. vampires. you know everything about it. you've got the teeth in real life. i'm impressed. >> not a fair observation. >> in washington, who is the biggest vampire? >> all of them. i would say, oh. i think washington is full of vampires. they suck the life out of peel. i think that some people in this there with all these ideals and want to change the system. and then you go through the politics, the red tape pitch the end of the day they look like they're just so jaded and used up. >> they are. >> yeah. so maybe it is a big coven. >> we should have been said sarah palin. >> charlie rangel is not looking to good right now. here's the former chairman of
ways and means. 11 out of 13 indictments have come down will. >> be indictment. >> you're right. ethics charges. and you go, this is a man who had a very powerful position and refuses to admit did he anything wrong. >> didn't he walk out? he walked out today. that does be look good for you, my friend. >> what do you they'll do to him? >> i think they will have, you know, a slap on the wrist in the form of words. and censure really at the end of the day is words. it is saying this person did something. >> that to go your point. >> the vampire that i'm more concern about is the unelected elitist vampire of the social security commission that we have there. basically, these folks come in and they want to you work longer. even though you've been paying into a system that you were told had a certain end date themselves want to take your money. and it looks like some of them, part of this initial report we have from the chairs -- the commission. they also want to take your money and give more of it to
multimillionaires if you look at the proposal. >> well -- >> we have to cut somewhere. we've got to let, bloodlet will. >> 2050. 2050. >> 40 years from now. >> excuse me. you're right. 40. democratic math. we can't subtract either. we have to take a break. we want to hear from you. check out our blog. follow us on facebook and twitter. [ man ] december 31st. it's more than just the last day of the year. it's the last day you can switch your medicare part d plan. we just switched ourselves and we're happy we did. [ male announcer ] make the switch to an aarp® medicarerx plan, insured through unitedhealthcare. call now for a free information kit. discover why these part d plans are so popular
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hello. more of parker spitzer in a moment. first the latest. our ivan watson reporting, haiti's northern city is under siege from angry mob with little or no police protection as haitian leaders urge calm in the wake of yesterday's deadly riots. protesters blame under peace keepers for the cholera outbreak that has kill more than a thousand people since last month. today the under mission clald the violence was politically motivated. president obama has awarded the medal of honor to army staff sergeant salvatore giunta who risked his life to save members of his unit while under attack by the taliban but not all survived. sergeant giunta is the first living recipient of the medal during an ongoing conflict since 1976. and tonight on 360, britain's prince william has finally popped the question to long time girlfriend, kate middleton. the princess bride to be has been seen but never really heard
welcome back to our political party. time for one final question. president obama's new children's book, of thee i sing, come out today. given that all children's books have a teachable moment and given the president's recent shellacking in the mid-term elections and his trip to asia, what would the teachable moment be in whatever book he might pen today? >> this is what obama should tell children across america and he have one in his party. stand up to bullies or they will hurt other people. >> i want to say this. who are the bullies we're talking about? >> the bullries the republicans, the talk show hosts, your rush him becauses who -- >> i don't think either of you as bullying. never in my conversations here. >> i'll show you. >> how about learn how to listen? when people across america are screaming for two years that they don't like what you're doing, how about listen? more importantly, how about don't write a children's book and focus on the economy. >> that's what i was going to
say. >> who has time to write a children's book? >> come on. >> first of all, i'm not going to say anything out of alone but i imagine somebody else wrote it for hill. i'm i know this is the part you're going to have fun. this president took oh an economy losing 800,000 jobs every month. we are now adding 151,000 job a month. more jobs added unhis, one year than we got in all eight years of george bush. i wish the republican party would start -- >> you mean george bush only had 4.5% unemployment? >> the truth about how they destroyed our economy. we are not going to make -- >> voters across america were yelling, they were shouting and the president wasn't listening. he said, i don't care what you have to say. he was condescending to them. very could understand scending to them. if there is a teachable moment after this kind of shellacking like we've never seen in history, it is listen to the people.